Consider a game in which three players must decide how much to contribute to fund a holiday party. Each player i ∈ {1, 2, 3} selects a contribution level xi ∈ [0, 2] at personal cost x 2 i . The party yields to each player a benefit of x1 +x2 +x3 +x1x2x3. This, player is payoff is x1 + x2 + x3 + x1x2x3 − x 2 i .

Bandar industries berhad of malaysia manufactures sporting equipment. one of the company’s products, a football helmet for the north american market, requires a special plastic. during the quarter ending june 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. the plastic cost the company $171,000. according to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. 1. what is the standard quantity of kilograms of plastic (sq) that is allowed to make 35,000 helmets? 2. what is the standard materials cost allowed (sq x sp) to make 35,000 helmets? 3. what is the materials spending variance? 4. what is the materials price variance and the materials quantity variance?